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ST-Ericsson have been working on a smartphone platform that could mean we would see brand new Android handsets on the market for as little as 100 Euros (£88).

ST-Ericsson’s U6715 platform allows for the cheaper handsets to be made as its hardware-based multimedia engine allows any ARM based phone to more efficiently work with applications, meaning only weaker, cheaper processors are needed.

“There is a huge surge in consumer demand for handsets that can be customised with downloadable apps, but, up to now, smartphones have been too expensive for many potential buyers,” ST-Ericsson 3G chief Marc Cetto said in a statement.

“Our U6715 platform has been designed to enable the smartphone to break out of its current high-end niche and become a true mass-market product in 2010.”

The U6715 platform would support touch screens, email, video streaming, a camera up to five megapixels and Wi-Fi. It also includes a HSPA modem with download speeds of up to 7.2Mbps.

The cheapest smartphone currently available is a the T-Mobile pulse from Huawei, which has a pay-as-you-go price of £180. If ST-Ericsson’s claims are true, it would make the smartphone market dramatically more accessible to consumers on a tight budget.